The determinants of foreign direct investment inflows in Malaysia / Mimi Asmida Saidin

Foreign direct investment has grown significantly in most developing countries since 1980s including Malaysia. Furthermore, foreign direct investment inflow in Malaysia started as early as 1920s when there were already substantial British investment. This shows that foreign direct investment play a significant role in boosting and speeding up the economic condition in Malaysia. The core idea of this research study is to examines the determinants of foreign direct investment inflows in Malaysia started from 1978 to 2018. The frequency used were based on annually data of time series and obtained from World Bank. Besides, multiple linear regression were used to identify the significant relationship between the independent and dependent variables. Based on the result , it depicts that economic growth and inflation rate were found to have a significant relationship toward foreign direct investment. However, there were no significant relationship between trade openness and infrastructure towards foreign direct investment. Thus, the main determinants of foreign direct investment inflows in Malaysia were economic growth and inflation rate.